Mt. Hood Community College Receives $2.01 Million in Settlement Monies

October 11, 1999

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Attorney General Hardy Myers today disbursed to Mt. Hood Community College (MHCC) $2.01 million in settlement monies obtained from two developers who unlawfully transferred property constructed and managed by charitable corporation to various for-profit corporations they owned and controlled. The funds will go towards improving services to students at the college.

"These funds will assist in our continued efforts of providing the best services possible for our students at Mt. hood Community College," said Dr. Joel Vela, MHCC President. "I would like to thank the Attorney General and his staff for their work on this case."

The settlement resolved a 1990 lawsuit filed by the Department of Justice against the two developers on behalf of MHCC and four other colleges and universities in the state. The pair obtained low-cost federal loans to build student housing at the educational institutions and established Adult Student Housing, Inc. (AH) to construct and manage the facilities. The state alleged that ASH was formed as a charitable corporation, that the properties could be transferred only to other charitable organizations, and that the developers unlawfully transferred the housing facilities to various for-profit corporations they controlled. In MHCC's case, the developers constructed a complex near the campus known as ASH Mountain.

In resolving the litigation, the court ordered that the settlement funds be used to foster affordable housing for students, but because MHCC does not provide on-campus housing, the college was required to prepare alternative proposals for utilizing the funds. The funds were released to the college today following formal approval of the college's funding proposal.

Under the college's proposal, MHCC will create a new enrollment services area that will localize and consolidate such departments as Advising and Counseling.

"A centralized enrollment services area will make it easier for students to obtain all information and services required to enroll and do general business at the college, " Dr. Derr said.